Mortgage broker - ask me anything

sammyj84

Hello 

Were first time buyers doing a right to buy, 

Nit sure if to do with with Natwest who I bank with or nationwide. Is it best to go with lowest amount paid at the end of the 5 year term including fees and cashback or lowest rate? 

Both of which are affordable and there's only £100-£200 difference 

Morgage_Confused

I'm looking for a mortgage and would usually just pop into Barclays as both of us used to be employed so working out earnings and multipliers was easy. However we are now both self employed. There is also a Ltd company with a dividend payment to take into account.
LTV is going to be 40% or so.
Is it now unwise to go direct to lender? Our credit rating  is probably perfect. No missed payments or loans other then existing mortgage.
If a mortgage adviser is recommended, where do I find one.  We are in Surrey.
Thanks
ps are there any mortgage calcs on any lender websites where I can work out roughly they will lend just as a guide.

K_S

Morgage_Confused said:

I'm looking for a mortgage and would usually just pop into Barclays as both of us used to be employed so working out earnings and multipliers was easy. However we are now both self employed. There is also a Ltd company with a dividend payment to take into account.
LTV is going to be 40% or so.
Is it now unwise to go direct to lender? Our credit rating  is probably perfect. No missed payments or loans other then existing mortgage.
If a mortgage adviser is recommended, where do I find one.  We are in Surrey.
Thanks
ps are there any mortgage calcs on any lender websites where I can work out roughly they will lend just as a guide.

@mortgage_confused I would always recommend using a mortgage broker (but then I would say that wouldn't I ), and especially so for SE apps in the current lending environment.

Unless you absolutely want face to face advice (I myself don't know of any brokers currently providing f2f advice) or have a preference for local businesses, the broker's location should not make much of a difference, they could be based anywhere in the UK. You could ask friends/family/colleagues for recommendations, use MSE's recommended brokers, etc.

You can use the intermediary affordability calculators to get a rough idea. Though do be aware that it isn't always straightforward to fill them out accurately without knowing the criteria that the lender uses. Here's Barclays' calculator https://resources.barclays.co.uk/mortgage-calculators/residential-affordability

Good luck!

Tay1309

We are first time buyers and have currently been saving towards a 10% deposit, currently at about 6.5% of what I think our max budget would be. Obviously with the introduction of 95% LTV we could look a little earlier, 
What are your thoughts on the 95% mortgage on the whole? Would you advise people to continue saving or just get on the ladder now? I am inclined to wait to bump up our savings even more, my husband just wants to get on with it as he worries about house prices rising. 
I know it's a hard question to ask but just before we start the process of finding a broker I want to get a bit of impartial advice to understand what the thoughts are in the industry.  
Details: 
Joint Income: £81,500 
Outgoings: £363 car payments + £50 child care
Credit: Excellent
Max budget: £350,000
Deposit Saved: £23,000 (currently saving £2k a month)

K_S

Tay1309 said:

We are first time buyers and have currently been saving towards a 10% deposit, currently at about 6.5% of what I think our max budget would be. Obviously with the introduction of 95% LTV we could look a little earlier, 
What are your thoughts on the 95% mortgage on the whole? Would you advise people to continue saving or just get on the ladder now? I am inclined to wait to bump up our savings even more, my husband just wants to get on with it as he worries about house prices rising. 
I know it's a hard question to ask but just before we start the process of finding a broker I want to get a bit of impartial advice to understand what the thoughts are in the industry.  
Details: 
Joint Income: £81,500 
Outgoings: £363 car payments + £50 child care
Credit: Excellent
Max budget: £350,000
Deposit Saved: £23,000 (currently saving £2k a month)

@tay1309
- 95% mortgages, I don't have any details yet as the first products are only expected to come out in mid-April. It's great news for those with low deposits imho.

- Personally, I always lean towards getting on the ladder sooner rather than later. But there's no right or wrong answer to that question as it depends on your specific situation. For example if you are in the lucky situation of renting below market value in a property/area that you are happy with, then it may make sense to keep saving and buy later on.

321654987

K_S said:

321654987 said:

K_S said:

321654987 said:

Hello, we finished a DMP 4 years ago. I have 2 x defaults on my file, both paid in Oct 2016 and with default dates of April and June 2015 respectively. We are desperate to buy a house and the new 90-95% govt. guarantee would really help us out with getting the type of house we want especially with the hold on SD, however after a quick chat with a mortgage broker he's said we'd really struggle getting even a 90% LTV. Is this really the case? We are completely debt free now and have been for years. We have a joint income of £75k and have a deposit of £25k. I just want some realistic advice as to how long we will have to wait.

@321654987

- 95% LTV, you'll have to wait to see which lenders come into the market. You can expect that underwriting standards will be very strict.

- is there any specific reason why you don't trust what the broker said?

- are you willing to pay higher than high-street rates for 90% LTV?

- did he suggest a way forward at all

It's not that I don't trust him it's just that I feel we're in a better position than others might be, it seems unfair. I don't know how (given how high house prices are) we are supposed to rent and save a big enough deposit for a standard family home at 15 or 20%. You'd need a £40K deposit for a 200K house before you've even taken fees into account. Bonkers!
I think I would pay higher because I know I can - I just can't save a deposit fast enough. He's going to have a look at my credit reports but it seems pointless really if there are going to be such strict standards. Thanks for your response. 

@321654987 I hear you Unfortunately, as a broker you can only work to the rules lenders set. Plus, from experience, no two cases are ever exactly the same.

Clients don't always appreciate that from a lender's point of view, LTV is king and their primary comfort when deciding whether to lend someone money or not. 90% to 85% LTV might seem like a small jump, but it makes a dramatic impact on your chances as a borrower.

Thanks I appreciate that. Do you think that the government's guarantee announced last week will have any impact on LTV? As in more lenders might be encouraged to offer 90-95% as a result? I've decided to hold off anyway for now. Both defaults should fall off my report in APril and June, we will have less childcare to pay as of September, and we will also have a better idea of how the market is looking...

steevwatson

Hi
I have a mortgage in principle which would enable me to use the first home fund in Scotland along with my 5% deposit to purchase a property that I really love. However I took out a salary finance loan 2 months ago at the time I was planning on waiting around a year to buy a house but I have seen a property that my partner and I would really like to buy. I used the salary finance loan to pay off part of the balance on a credit card that I used to purchase a bike to travel to work when public transport was changed due to the Lockdown. I already had a salary Finance loan in place but at a higher monthly payment. The new one cleared the old one and lowered the monthly payment which is deducted from my salary before tax each month. I know it seems strange to get a loan to pay some of my credit card but I got a discounted rate to pay off the ebike as it was an ebike to travel to work. 

Sorry for the long winded into. Any advice would be appreciated.
Thanks. 

K_S

321654987 said:

K_S said:

321654987 said:

K_S said:

321654987 said:

Hello, we finished a DMP 4 years ago. I have 2 x defaults on my file, both paid in Oct 2016 and with default dates of April and June 2015 respectively. We are desperate to buy a house and the new 90-95% govt. guarantee would really help us out with getting the type of house we want especially with the hold on SD, however after a quick chat with a mortgage broker he's said we'd really struggle getting even a 90% LTV. Is this really the case? We are completely debt free now and have been for years. We have a joint income of £75k and have a deposit of £25k. I just want some realistic advice as to how long we will have to wait.

@321654987

- 95% LTV, you'll have to wait to see which lenders come into the market. You can expect that underwriting standards will be very strict.

- is there any specific reason why you don't trust what the broker said?

- are you willing to pay higher than high-street rates for 90% LTV?

- did he suggest a way forward at all

It's not that I don't trust him it's just that I feel we're in a better position than others might be, it seems unfair. I don't know how (given how high house prices are) we are supposed to rent and save a big enough deposit for a standard family home at 15 or 20%. You'd need a £40K deposit for a 200K house before you've even taken fees into account. Bonkers!
I think I would pay higher because I know I can - I just can't save a deposit fast enough. He's going to have a look at my credit reports but it seems pointless really if there are going to be such strict standards. Thanks for your response. 

@321654987 I hear you Unfortunately, as a broker you can only work to the rules lenders set. Plus, from experience, no two cases are ever exactly the same.

Clients don't always appreciate that from a lender's point of view, LTV is king and their primary comfort when deciding whether to lend someone money or not. 90% to 85% LTV might seem like a small jump, but it makes a dramatic impact on your chances as a borrower.

Thanks I appreciate that. Do you think that the government's guarantee announced last week will have any impact on LTV? As in more lenders might be encouraged to offer 90-95% as a result? I've decided to hold off anyway for now. Both defaults should fall off my report in APril and June, we will have less childcare to pay as of September, and we will also have a better idea of how the market is looking...

@321654987 It's too early to say for sure, but assuming the macro economic environment remains stable, I would expect more lenders coming back into high-LTV lending. From a lender's point of view it's simply too lucrative not to as there is likely to be a huge pent-up demand to satisfy with clients that aren't particularly rate sensitive.

FWIW, I think it's very sensible to wait to bolster your credit history and lower outgoings. And perhaps the lending environment would also have changed significantly by then with a good level of competition at 90% and 95% LTVs.

K_S

steevwatson said:

Hi
I have a mortgage in principle which would enable me to use the first home fund in Scotland along with my 5% deposit to purchase a property that I really love. However I took out a salary finance loan 2 months ago at the time I was planning on waiting around a year to buy a house but I have seen a property that my partner and I would really like to buy. I used the salary finance loan to pay off part of the balance on a credit card that I used to purchase a bike to travel to work when public transport was changed due to the Lockdown. I already had a salary Finance loan in place but at a higher monthly payment. The new one cleared the old one and lowered the monthly payment which is deducted from my salary before tax each month. I know it seems strange to get a loan to pay some of my credit card but I got a discounted rate to pay off the ebike as it was an ebike to travel to work. 

Sorry for the long winded into. Any advice would be appreciated.
Thanks. 

@steevwatson Sorry I'm not sure what the quesiton is. If it's about what impact the loan may have on your borrowing, it's hard to say as there isn't sufficient info in your post.

Terrace

I am after some advice please.

Late 30s
single applicant with 1 dependant 
FTB
90k salary
very secure job
 no CCJ no default no debts
but 3years+ ago pay day loans taken almost monthly for about 18month - always paid in time. Last one taken mid 2018. 

Any change to get mortgage with 90% LTV mortgage of 250k from high street lender with this history? Or better go to adverse credit lender through broker for 3y fix and then remortgage for better rate when payday loans no longer visible on the credit report?

banking with hsbc for 10 years and savigs are in hsbc account? Any chance going direct with them? 

I am thinking about going to broker anyway but thought will ask what my chances are.

thank you